Monday, May 10, 2010

May is National Disability Insurance Awareness Month: Take Two

By way of reader Nat Harward, here's even more news-you-can-use. In my post last week, I posited that disability income insurance (DI) is "valuable, but undersold and underbought." Nat tells us that, according to a recent LIFE (Life and Health Insurance Foundation for Education) survey:

� 25 percent of workers cannot say for certain whether they have disability insurance coverage.

� Of those who say they do have coverage through their employer, a majority cannot pinpoint how much they have.

� When asked about what percentage of their salary would be paid to them if they were to become disabled, 39 percent had no idea and wouldn�t guess while 21 percent greatly overestimated their coverage, supposing policies would pay anywhere from 70 to 100 percent.

In a way, that's even more troubling, because it gives folks a false sense of security. And it's really not difficult to find out if one has such coverage, and how much it would actually pay. If one works for a large employer, a call to HR should do the trick; if not, why not ask the boss?

And if you haven't already, please check out the original post on this.

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